Wall Street Closes Lower as Banks, Energy Shares Tumble


NEW YORK, Jan 15 Reuters Wall Streets main indexes finished lower on Friday, with the biggest drag coming from big U.S. banks after their earnings reports, while the energy sector was weighed down by a regulatory probe into Exxon Mobil Corp .

The SP 500 banks index lost ground as shares of Wells Fargo Co, JPMorgan Chase Co and Citigroup Inc tumbled even though they had posted betterthanexpected fourthquarter profits. The bank sector had rallied sharply in recent days.

Wells Fargo was the among biggest drags on the SP 500, along with Exxon Mobil.

Financials and energy have been disappointing … thats bringing down the whole market, said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina.

This year is the year for financials, energy, materials, industrials. So if there is a day when theyre not leading, its not good news for the market.

Wall Streets major indexes had recently hit record highs on hopes for a hefty fiscal stimulus package.

Incoming U.S. President Joe Biden late on Thursday unveiled a 1.9 trillion stimulus proposal, which included some 1 trillion in direct relief to households.

Meanwhile, data showed a further decline in U.S. retail sales in December in the latest sign the economy lost considerable speed at the end of 2020.

The weakerthanexpected economic data, and especially in parts of the economy like retail sales, is a big driver, said Liz Ann Sonders, chief investment strategist at Charles…

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